Aim stock valuations on rebound in third quarter

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LIGHT is on the horizon for small cap investors after stock valuations on the Alternative Investment Market (Aim) showed a strong rebound in the third quarter of the year.<br /><br />The total Aim market capitalisation has risen 50 per cent to &pound;56.6bn since the end of last year, with 27 per cent of this increase being clocked in the three months to September.<br /><br />The tide of delistings is also beginning to slow, with 60 firms leaving the market in the third quarter compared with 137 in the first half of the year.<br /><br />&ldquo;There are grounds for cautious optimism for Aim even though there remain some uncertainties, in particular over the economy, government debt, unemployment and of course an election,&rdquo; said Chilton Taylor, head of capital markets at Baker Tilly.<br /><br />There have been just four IPOs on Aim this year, compared to 37 over the same period last year. Total funds raised over the first three quarters fell by 22 per cent to &pound;3.1bn, down from &pound;4bn last year.<br />